Australian dollar rose on Wednesday as the greenback weakened against rivals, ahead of new remarks by Reserve Bank of Australia's governor Philip Lowe.

Lowe opened the door for a rate hike later this week, noting the risks that would accumulate if hiking rates was delayed by too much.

Lowe pointed to rapid inflationary pressures worldwide, especially with shortage of certain essential commodities.

Lowe lauded the improvements of the Australian economy and how inflation so far hovers near targets despite the worldwide chaos, while wages continue to improve as well.

AUD/USDD rose 0.6% as of 17:43 GMT to 0.7318, with an intraday high at 0.7338, and a low at 0.7264.

US stock indices advanced on Wednesday as risk appetite improves in the market despite ongoing geopolitical tensions.

US President Joe Biden decided to ban Russian energy imports of oil and natural gas.

Russia responded by banning exports of minerals and a variety of commodities to the US until next December.

Analysts expect inflation to spike worldwide and hurt consumers, with oil prices already hitting historic highs.

More US and western companies, such as Starbucks, Coca-Cola, Pizza Hut, ExxonMobil, Shell, and others announces a suspension of their operations in Russia.

Dow Jones surged 1.9% to 33,260 as of 15:06 GMT, while NASDAQ added 2.6% to 13,134, as S&P 500 rose 2.1%% to 4,260.

Since the US, the EU, and Britain announced plans to ban Russia's energy supplies, everyone is wondering how truly dependent is the world on Russia's energy supplies? we try to answer these questions in this report.

New Sanctions

As Russia ramps up operations in Ukraine, western countries are ramping up their tough sanctions on Russia's economy, this time targeting Russia's energy sector.

US President Joe Biden announced a complete ban on Russian oil and gas imports, with the EU and UK announcing similar steps, in what's considered a huge escalation in response to Russia's invasion of Ukraine.

The decision came after the US Congress voted officially in support of a ban on importing Russian energy imports.

The EU announced similar a similar plan to give up Russian energy imports, in a step that seeks to repudiate Russia on its invasion of Ukraine

The UK as well announced plans to get rid of its Russian oil imports gradually by year's end.

The decisions came amid global steps to isolate Russia and punish President Putin for his military ventures.

Reactions 

Russia's government warned from repercussions on the global market if the west attempted to ban Russia supplies.

Oil and gas prices are already sharply reacting, with US crude hitting 14-year highs at $129.42, while natural gas hit record highs at $4,173.

Russia's oil

Russia is the world's second largest oil producer after the US, averaging 10.5 million bpd, of which it exports 7 million bpd.

Half of Russia's exports go to Europe, while 8% of the UK's energy imports come from Russia, and 3% from the US imports come from Russia.

Alternative sources 

The west is moving quickly to find alternatives for Russia's oil, with the US asking Saudi Arabia to increase production in the next few months.

Saudi Arabia already refused previous US requests to increase output in order to decrease prices, but the new situation is quite different.

The US is also considering a relaxation on Venezuela energy exports to support global supplies, however Venezuelan supplies are tied up to China

Another path is opening up Iran's supplies to the world after reaching a final nuclear agreement.

Bitcoin surged nearly 10% on Wednesday for yet another session as demand rallies on the cryptocurrency from Russian investors, amid western sanctions on Russia's financial system.

The US banned Russian energy imports yesterday in a move that was followed by the UK and the EU, although gradually, as punishment for Putin's invasion of Ukraine.

At Bitstamp, Bitcoin surged $3,798, or 10% to $42,559, with a session-low at $38.667.

Bitcoin added 1.9% on Tuesday, the first profit in three sessions away from two-week lows at $37,169.

Market value for cryptocurrencies rose nearly $125 billion to $1.85 trillion amid strong gains by Bitcoin, Ethereum, and other major digital currencies.

Russian investors continue to buy up bitcoin as an alternative amid western sanctions on Russia's banking system, with bitcoin hitting record highs against ruble, about 5 million rubles.

Now traders await a spate of developments to gauge the path forward, including US inflation data and the ECB's meeting decisions next Thursday.